Croatia’s private accommodation faces structural shift as beds disappear

Croatia’s private and family-run accommodation sector entered 2025 under growing pressure from new tax measures and legislative changes, with early data already pointing to visible consequences on the market.

While headline tourism figures continue to show modest national growth, as Jutarnji list reports, underlying trends reveal significant structural shifts that are particularly affecting accommodation in private households.

According to Croatian National Tourist Board data, 668,514 beds were registered in private accommodation at the end of August this year, compared to 671,508 a year earlier.

This represents a loss of nearly 3,000 beds in just twelve months, during the peak of the tourist season. Although the decline appears moderate, experts see it as the start of a trend that could accelerate in the coming years.

Overall tourism results remain relatively stable. In the first eleven months of the year, the commercial sector recorded 20.4 million arrivals and 94.7 million overnight stays, up two per cent and one per cent respectively compared to last year.

The non-commercial segment remained unchanged, with 460,000 arrivals and 10.7 million overnight stays. July and August showed flat arrivals and a one per cent drop in overnight stays.

Despite these figures, 2025 has been marked by uncertainty. The private accommodation sector has faced a series of regulatory and financial pressures, including the introduction of a property tax, higher flat-rate taxes, deadlines for removing categorisation permits in residential buildings with more than four units, and a halt on issuing new permits in such properties.

At the same time, operating costs such as utilities, cleaning, maintenance and supplies have continued to rise.

These changes have hit small-scale and budget accommodation providers the hardest. Many owners offering affordable lodging have exited the market, unable to absorb rising costs and taxes. This is now reflected in the falling number of beds, Jutarnji list writes.

At the other end of the spectrum, luxury villas with pools continue to grow slightly in number, but face increasing competition. High-end mobile homes and modular units in campsites, along with mixed-use resorts where properties are centrally managed and rented, are placing downward pressure on prices and demand.

Looking ahead, 2026 could mark a turning point. Lower-category private accommodation is expected to continue shrinking, with many properties shifting to long-term rentals, worker housing or being sold altogether.

At the same time, changes in source markets are emerging. Demand from Germany, traditionally the backbone of family accommodation, is weakening, while wealthier guests from Eastern Europe are becoming more prominent.

Together, these trends suggest Croatia’s family accommodation sector is entering a period of deep and lasting transformation, with fewer beds, a changing guest profile and a market very different from the one that defined Croatian tourism for decades.